Disney Parks’ Employees Filing for Unemployment After Furloughs

When Disneyland custodian Elizabeth Gonzalez heard she and thousands of resort employees were being furloughed, she was grateful not to lose her job and understood the action was necessary in light of the park’s pandemic-related closure a month before.

Despite filing for unemployment a few days before the furlough began, Gonzalez, 26, had not received any assistance nearly two weeks later and began struggling to make ends meet.

At the same time, she heard that other workers had received unemployment benefits although they had filed claims after her.

“Basically, I’m down to my last $100, and I’m trying to stretch it out and make it last,” Gonzalez said.

As the U.S. faces the highest unemployment rate since the 2008 financial crisis, Gonzalez and millions of other American workers are encountering uneven government execution of unemployment services that they are entitled to.

Without a source of income, Gonzalez was unable to pay her credit card bills. While she relied on her parents for assistance with her phone bill and car insurance, they could barely afford to pay their mortgage, Gonzalez said.

The unemployment process can take a while and be undependable, she said.

In addition to working at Disneyland, Gonzalez is a shop steward for Service Employees International Union, which represents janitors, security officers, and property service workers across California. As a shop steward, she is concerned for elderly employees living in quarantine who don’t have regular internet access to hear news of the furlough and apply for unemployment benefits.

Many people did not know they were furloughed, because employees never received official news from Disney, Gonzalez said.

“I’m worried for those few people who are gonna slip through the cracks, and all of a sudden they’re gonna be out of that paycheck that they really need,” Gonzalez said.

Before furloughs occurred, many Disney employees were already living paycheck to paycheck, Gonzalez said.

Disneyland began furlough negotiations in early April, and reached agreements with 10 unions, including Workers United Local 50, which represents the culinary aspects of the resort.

When Disneyland first approached unions to negotiate a furlough, the union’s main priority was ensuring the company continued to provide health care benefits to its full time employees, said Chris Duarte, President of Workers United Local 50.

While many companies are laying off employees, Disneyland has provided a middle ground where employees keep their health benefits and are eligible to receive unemployment assistance, Duarte said.

“We knew from an economic position that wages for the most part would be protected because of that extra money from the CARES Act,” Duarte said.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a $2 trillion economic relief package intended to provide financial assistance for workers, families, and small businesses through the distribution of stimulus checks. Payments can be up to $1,200 per adult for people whose income was less than $99,000, according to the U.S. Department of the Treasury.

While Gonzalez did receive a stimulus check, she described it in a text message as “a bandaid on a gaping wound. It’s gone already.”

After nearly three weeks, Gonzalez received unemployment compensation. However, the delay in receiving state unemployment assistance left her temporarily unable to pay her bills.

“Close to the end, I was feeling like I was drowning,” Gonzalez said.

Before receiving unemployment benefits, Gonzalez had to ignore many of her bills. The delay significantly impacted her credit score, Gonzalez said.

Complications extend beyond California as thousands of Disney World employees in Florida face these same furloughs.

With Disney parks experiencing their longest closure in history, Disney World employee Mae Bennett said she does not know how the company could have been prepared for this situation.

“Since 1955, there’s never been a day where every single Disney park in the world has been closed,” Bennett said.

Bennett, 20, is a quick-service food and beverage employee whose three roommates work at Disney World as well. She is also a part of Disney Aspire, a college education program that fully funds her tuition at the University of Central Florida.

Bennett said she is thankful that Disney is still guaranteeing jobs, health insurance, and education benefits in a time when employees need it most.

“We are so lucky that even though they can’t pay us, they are still giving us those benefits,” Bennett said.

At the same time, Bennett said her biggest concern is how long her household of four can continue before they hit a wall and are unable to pay rent.

Before furloughs, employees were paid their average weekly hours during the shutdown, Bennett said. As a part-time employee, she received an income of $452 during the first month of the shutdown.

However, Bennett said if parks do not reopen by June, her roommates will have to find second jobs to help make their $1,689 monthly rent.

Bennett has a second job at Disney Springs, the shopping and restaurant district outside Disney World. She returned to work part-time on May 15 when the shopping center reopened.

While she does have a second job, she is concerned for many employees who don’t have the same opportunity, Bennett said.

Bennett and her roommates have not received unemployment assistance despite applying over a month ago. Three of them have received a stimulus check.

“The stimulus check has helped us feel more financially secure. That check means a few more months we can guarantee that we can pay our rent, make car payments, and pay utility bills,” Bennett said in a text message.

On May 5, The Walt Disney Company reported second-quarter profits of $2.4 billion, a 37% decrease from the previous year. Despite $1.4 billion in losses, the company is confident in its ability to withstand this disruption and emerge from it in a strong position, said Disney CEO Bob Chapek during the second-quarter earnings call.

Shanghai Disney Resort reopened on May 11 as cases of COVID-19 have lessened in China since the parks’ initial closure. While Disney resorts in Anaheim and Orlando have not announced reopen dates, the American parks will likely require social distancing and masks for employees and guests, Chapek said in an interview with CNBC.